Summary
Cigna Group (CI) filed an 8-K on September 9, 2020, primarily to update investors on financial guidance and the divestiture of its U.S. Group Disability and Life business. The company reaffirmed its full-year 2020 projections for consolidated adjusted revenues between $154 billion and $156 billion, and consolidated adjusted income from operations per share in the range of $18.00 to $18.60. Looking ahead, Cigna reiterated its target of achieving consolidated adjusted income from operations per share of $20.00 to $21.00 in 2021. The company also provided an update on the sale of its U.S. Group Disability and Life business to New York Life. Cigna has obtained 55 out of 65 required regulatory approvals. While no objections are expected, the ongoing COVID-19 pandemic has delayed the approval process, pushing the expected closing date to the fourth quarter of 2020. Additionally, Cigna confirmed its expectation to be in the upper 30%s for its debt to capitalization ratio by the end of 2020.
Key Highlights
- 1Reaffirmed 2020 consolidated adjusted revenue guidance of $154-$156 billion.
- 2Reaffirmed 2020 consolidated adjusted income from operations per share guidance of $18.00-$18.60.
- 3Maintained 2021 consolidated adjusted income from operations per share target of $20.00-$21.00.
- 4Provided an update on the sale of the U.S. Group Disability and Life business to New York Life.
- 5Secured 55 of 65 required regulatory approvals for the divestiture.
- 6Revised the expected closing date for the U.S. Group Disability and Life business sale to Q4 2020 due to pandemic-related delays.
- 7Confirmed expectation of debt to capitalization ratio in the upper 30%s by December 31, 2020.